Corporate Strategies to beat the Downturn: Cutting Slack and Layoffs
February 12, 2025
Job evaluation is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many ways: Reduction in inequalities in salary structure – It is found that people and […]
The process of needs assessment happens at three stages or levels, the organisational, the job and the person or the individual. This is the basis for any needs assessment survey and remains the same more or less in all organisations around the globe. There are however many techniques for collecting the data for training need […]
Assessment Center An assessment center is basically a series of assessments carried out using several techniques like simulation, psychometric test and exercises to take critical decisions like selective or rejecting a candidate for recruitment, for promotions and appraisals etc. There are some basic considerations for running an assessment centers which is again the corporate adaptation […]
What could be the biggest source of competitive advantage to an organization in the current era of cut throat competition? If I asked this question a decade or two decade, the answer would have been something like – ‘it’s the technology’, ‘its global presence’, ‘its customer perception’ etc. All of them can be a potential […]
Human capital management refers to development of human capital through regular trainings, skill development activities and retaining talented employees. An individual who strives hard for the maximum part of the day to accomplish the goals and objectives of an organization are its real assets. Machinery, capital, innovative ideas and office furniture do play an essential […]
Compensation system involves the total rewards that are given to the employees for the labour and services they provide to the organization. Compensation includes direct monetary benefits as well as indirect monetary benefits.
Wages and salaries form the direct financial benefits that an employee receives from his or her company. Besides, wages and salaries, bonuses and commissions also form a part of the direct monetary benefits. The indirect monetary benefits include paid absences and other leave benefits, retirement plans, employee insurance schemes, health plans, education benefits and other such benefits.
A well-defined and balanced compensation system gives the organization an advantage of maintaining internal as well as external equity. It is a powerful tool for attracting employees, motivating them to work in achieving the strategic organizational goals, and retaining them in the long run. An HR Consulting Firm can provide an in depth analysis and detailed report on the setting up of a balanced compensation system for the company.
An organization need to have a clear compensation philosophy which is in line with the strategic goals, objectives and culture of the organization. Based on the compensation philosophy of the company, the various components of compensation are designed and chalked down in detail.
The development of compensation philosophy includes the study of various aspects viz:
Compensation detailing comprises of identifying positions and setting up of wage or salary specifications against each of the position. Also, incentive packages and bonuses, if any, are clearly defined for each of the position while describing the compensation related details.
Compensation detailing may involve execution of following activities depending upon the requirements of the organization:
A compensation study carried out in an organization generally involves following important elements:
Depending upon the requirements of the company, the HR Consulting Firm may take up the necessary aspects required to be considered for development and/or improvement of the compensation system in the organization, thereby, strengthening the compensation system of the company by making it more equitable and attractive.
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